The idea is that half a dozen startups can occupy the same office space when each has only three or four employees and can move out into bigger offices when they raise venture capital dollars or develop a level of self-sustaining sales.

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About 80% of TechStars companies go on to raise venture capital or a significant angel funding round.

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Part of the consideration in setting price is whether or not there are plans to raise a larger venture capital round.

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By nature, entrepreneurs are bullish, which leads many of them to see the ability to raise venture capital as a given or right.

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